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Technical analysis: US Ten Year Note Future

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US TNote Future – Dec 2009

Tue, Sep 1 2009, 11:29 GMT
by Nicole Elliott

Mizuho Corporate Bank  |  View company's profile


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Comment: Repeated rejection from the 4.00% area over the last four months suggests a test of the psychological 3.00% level next. A break below trendline support on the yield chart should lead to a sudden drop, hopefully this month. Though overbought, momentum for the futures contract is decidedly bullish which should allow it to break above July’s high at 117.19 where a round of short-covering is likely.

Strategy: Buy at 117.08; stop below 115.10. Add to longs on a daily close above 117.16 for 119.16/120.00 short term and 123.00 further out.


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